There are a lot of deadlines that come with running a business. In fact, missing some deadlines can have serious financial implications on the health of a business. Join the Lucrum Consulting team as we take a look at how much business owners can save by being on time with the following deadlines.
One of the toughest deadlines of all, making payroll, is essential to keeping employees happy. Making payroll tax deposits on time is even more critical. Save the following in penalties by staying on time with payroll deadlines:
- 1-5 days late: the penalty is two percent of the payroll
- 6-15 days late: business owners pay five percent in penalties
- More than 15 days late: the penalty increases to 10 percent
And that’s just the federal penalties, not state penalties.
Everyone knows about the April 15 tax deadline. Some business owners file an extension and have until October 15. Just remember the best estimate of the organization’s tax liability needs to be paid by April 15, even if an extension is granted. Failure to correctly estimate and pay income taxes leads to a penalty that is calculated by multiplying the number of days the tax is late by the effective interest rate.
Slow to make accounts payable payments? Vendors may tack on a penalty, impacting the overall business owner’s credit score. At a minimum and even if they don’t assess late payment penalties, they certainly aren’t going to offer their slow-pay customers preferred pricing which ends up costing more in the long run as well
It’s so easy to let internal deadlines slide, but they may be the most important. To move the business forward, set goals with deadlines to ensure the results are measured.
Lucrum frequently shares the following tips with our clients to help them master their deadlines and avoid the above pitfalls.
- Keep a list of deadlines or hire someone to help with them.
- Make a mental commitment that the deadline is important to business.
- Publicly commit to meeting them or post these deadlines in a public place. Never underestimate the power of peer pressure to help you meet your objectives.
- Set aside the time needed to prepare for the deadline. Block time on the calendar and stick to it.
- Be mindful of the consequences of missing the deadline.
- Try not to overcommit. Delegate other tasks when possible.
- If possible, automate or systematize the processes around the deadline so that it’s met automatically.
- Celebrate when a crucial deadline is met!
Lucrum Consulting can help you master the art of meeting deadlines. Call us at 980.999.2100 to learn how today.